Canada's annual inflation rate rose in January to 2.4%, up from 1.8% in December. Lower prices due to a sales tax reprieve were partially offset by increased costs of gasoline and natural gas, according to data released on Tuesday.
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Derek Holt, Vice President of Capital Markets Economics at Scotiabank, noted that "the underlying core data are too warm, in my opinion, for Bank of Canada to continue easing." He anticipated a rise in headline inflation until February, with only about half of the GST, HST increase expected to be captured. Holt emphasized the significance of upcoming tariffs and government spending decisions on the economic outlook for the next six months.